Realty firm TARC Ltd has reported an 84 per cent decline in its consolidated net profit to Rs 1.34 crore for the third quarter of this fiscal year on higher expenses. Its profit stood at Rs 8.50 crore in the year-ago period. Total income, however, rose to Rs 109.64 crore during the October-December period of the 2022-23 fiscal, from Rs 69.94 crore in the corresponding period of the previous year, according to a regulatory filing.
Net profit in the first nine months of this fiscal rose to Rs 18.83 crore, from Rs 10.62 crore in the year-ago period. Total income fell to Rs 239.12 crore during the April-December period of this fiscal from Rs 258.24 crore in the corresponding period of the previous year.
The company's expenses nearly doubled to Rs 105.50 crore in the third quarter of this fiscal, from Rs 57.74 crore in the corresponding period a year ago. TARC Ltd was formed in 2020 after the demerger with the listed entity Anant Raj Ltd.
It has a land bank of around 500 acres in Delhi, Gurugram, and Manesar. In May last year, TARC Ltd raised Rs 1,330 crore from private equity firm Bain Capital in the form of secured long-term non-convertible debentures. The company utilised part of the funding to pare debt and some parts will be utilised for construction as well as creating a land bank.
TARC Ltd is developing a luxury housing project in the national capital with an investment of Rs 500 crore. The 3-acre project, 'TARC Tripundra', located at Bijwasan Road in New Delhi, comprises 190 apartments.
This is the first project under the TARC Ltd brand name, although the Anant Raj Group has been in the real estate business for the last four decades. The construction work has started and the project will be completed by 2025. In September 2021, TARC Ltd sold a warehousing asset in North Delhi to global investment firm Blackstone for Rs 295 crore.